Manulife Asian Small Cap Equity Fund

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1 Manulife Asian Small Cap Equity Fund Small Yet Powerful Uncover Hidden Gems Attractively Valued Small Caps Focus on Emerging Leaders

2 Manulife Asian Small Cap Equity Fund Manulife Asian Small Cap Equity Fund aims to provide long-term capital growth by investing in the Target Fund, namely the Manulife Global Fund Asian Small Cap Equity Fund. Why This Fund? Because Small Cap Equities: Permit investment at the early stages of a company s growth before it becomes recognized by the general market and re-rates to potentially deliver a multibagger performance. Are often under-researched by the brokerage community. Can offer exposure to certain niche sectors and businesses. Still small but consistently profitable Small cap company in initial stages of growth Multi-baggers are stocks that have tripled while outperforming the relevant market returns in five years. Within the Asian small cap equity universe, there are abundant companies possessing key attributes like niche positioning, product superiority, and management quality that have the potential to rerate and become the next multi-baggers. Market share Medium to gains, strong large cap revenue growth company with and margin high valuations expansion Consider trimming position Take profit and unearth other hidden gems Attractive Market Management Quality / Vision Scale of companies Fund manager unearths low priced, high growth pebbles Which Companies have the Potential to be Multibaggers? Expansion path of small companies Source: Manulife Asset Management. For illustrative purposes only. MULTIBAGGERS Overseas Expansion Brand and Design Leadership Position in Industry Product Superiority and Proprietary Technology

3 Small Caps Attractively Valued vs Large Cap Peers Valuation is always a key consideration in investing. For small caps in particular, it is important to examine valuation while factoring in companies growth potential. Price/earnings to growth (PEG) ratio readings show that Asian small cap companies trade at an attractive valuation (below 1x) relative to large caps and the broader Asian market. Focusing on Emerging Leaders with Exponential Growth Potential We focus on emerging leaders in industries which are about to experience strong growth. We identified unique industry trends that have gained steam in Asia: Aging population, rising demand for quality lifestyles, and revolution in the Internet of Things. Key Investment Themes Small Cap Valuation More Attractive (PEG ratio) PEG ratio (x) Aging Population 0.37 Quality Lifestyle Fiscal Year 1 Fiscal Year 2 MSCI Asia Pacific ex Japan Small Cap Index MSCI Asia Pacific ex Japan Index MSCI Asia Pacific ex Japan Large Cap Index Source: Bloomberg, data as of 23 April MSCI APxJ Small Cap Index = MSCI AC Asia Pacific ex Japan Small Cap Index, MSCI APxJ Large Cap Index = MSCI AC Asia Pacific ex Japan Large Cap Index, MSCI APxJ Index = MSCI AC Asia Pacific ex Japan Index. Internet of Things Our Investment Capabilities On-the-ground presence in Global Expertise Equities Experts in Asia Investment Professionals Worldwide 10 Countries and Territories in Asia2 AUM of US$114 Billion of equity assets globally1 1 2 Source: Manulife Asset Management, as of 31 December It comprised of AUM/investment professionals of Manulife Asset Management (Asia) and of Manulife TEDA Co. Ltd., a joint venture between Manulife Financial (49%) and Northern International Trust (51%), part of the Tianjin TEDA Investment Holding Co. Ltd. Source: Manulife Asset Management, as of 31 December 2017.

4 Key Fund Information Name of the Fund Manulife Asian Small Cap Equity Fund ( the Fund ) The Manager Manulife Asset Management Services Berhad ( U) Fund Category Wholesale (Feeder) Target Fund Manulife Global Fund Asian Small Cap Equity Fund Base Currency RM Investment Objective The Fund aims to provide long-term capital growth by investing in the Target Fund. Important Note: The investable market of the Fund includes Pacific region. Any material change to the Fund s investment objective would require Unit Holder s approval. Investor s Profile This Fund is suitable for Sophisticated Investors who: wish to participate in the growth potential of the smaller capitalization companies in the Asian and/or Pacific region; and are willing to accept high risk in their investments in order to achieve long-term capital growth. Investment Policy and Strategy The Fund will invest in accordance with its prescribed asset allocation. That means at least 95% of the Fund s NAV will be invested in Share Class I of the Target Fund, while 2%-5% of the Fund s NAV will be in cash, money market instruments (including fixed income securities which have a remaining maturity period of not more than 365 days) and/or placement of current and fixed deposits with financial institutions for liquidity purposes. Performance Benchmark MSCI Asia Pacific ex-japan Small Cap Index Sales Charge Distribution Channels Sales Charge (applicable to all Classes of Units) IUTA Up to 5.50% of the NAV per Unit UTC Up to 6.00% of the NAV per Unit Manager Up to 5.50% of the NAV per Unit Annual Management Fee Up to 1.80% of the NAV of the Fund per annum calculated and accrued on a daily basis. Annual Trustee Fee 0.04% per annum of the NAV of the Fund. Minimum Initial Investment Minimum Additional Investment RM Class RM Hedged-Class USD Class RM10, RM10, USD5, RM Class RM Hedged-Class USD Class RM1, RM1, USD1, Distribution Policy Distribution of income, if any, is incidental. Financial Year End 31 October Cooling-off Period Six (6) Business Days from the date the master application form is received and accepted by the Manager. A cooling-off period is only given to an investor who is investing with the Manager for the first time. In the event of any dispute or ambiguity arising out of the Chinese translation in this brochure, the English version shall prevail.

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